REAL ESTATE DEVELOPMENT
Development 02 Southlane
Last Update 07.12.20
Investment Process: 88% Complete
Expected Time until Fund Maturity: 4 Months
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July 2018
July 2019
September 2018
July 2019
September 2018
February 2020
February 2020
November 2020
November 2020
Southlane Tower II
Discover the Progess
Marketing & Investment Strategy:
Due to the successful take-up of 100% of the Office and Retail Space in Southlane Tower I and Southlane Tower III the investment team is confident regarding the letting of the remaining office and retail units. There is a very high demand for high quality office space in the sector. Main occupants in Southlane Tower I & III comprise the Ministry of Finance, STM, ING, Adecco, Examotive, and the Royal Bank of Canada to name a few. Southlane Tower II has successfully signed a long term lease contract with TadaWeb, over 82% of the available office space. In 2019 the two remaining Office floors have been signed under a long term rental contract which brings the occupation level to 100%.
Based on past experience the investment team has chosen to refrain from active marketing of the available retail space totalling about 35% of the overall surfaces until 12 month to construction completion. Main Retail and Service occupants in Southlane Tower I & Southlane Tower III comprise Delhaize Supermarket, HealthCity Sportsclub, retail banking as well as attractive restaurants and bars.
Due to the Covid-19 pandemic in 2020 and the lockdown proclaimed by the Luxembourg Government, the management of the fund has decided to postpone the launch of the marketing of the retail space until September 2020. This strategy change has proven to be the right choice as the retail sector was among the most hit by the pandemic. Nevertheless the marketing team of Luxembourg Capital has been able to sign a letter of intent on 54% of the retail space due to be signed before the end of the year 2020, which raises the overall letting status of the building to 87% before completion.
Exit Strategy:
A Letter of Intent has been signed in December 2020 with a major institutional investor granting 2 months of exclusivity for due diligence and the negotiation of a sales contract for 100% of the shares of the SPV.
The offer received meets the price target set by the fund at maturity.
Letting Status Office: 100 %
Anchor Tenant:
TadaWeb 82%
Urban Office 18%
About Tadaweb:
Tadaweb is a high-growth, venture-backed company. Helping address some of the most critical and difficult challenges facing both governments, and society today, Tadaweb is the first Small Data Platform designed for and with governments.
Tadaweb's technology is unique in the world and based on over 16 years of research and development. It was recognised in 2016 as one of the globe's top 100 most disruptive technologies (Talt Ventures Index)
Letting Status Retail: 54% based on LOI's
Luxembourg Ministry of Finance 39%
Luxembourg Capital 15%
About the retail space:
Two Letter of Intents have been received for two major lettings on the ground floor of the building.
An Agreement has been found with the Luxembourg Government. We expect the full lease agreement to be signed before the end of the year 2020.
Furthermore the board of Luxembourg Capital has decided to move its offices which are currently based in Southlane Tower III to the ground floor in Southlane Tower II.
We are very confident regarding further lettings before the end of construction.
Asset Valuation & Evolution
Current Gross Asset Valuation at Maturity: 38.130.000,00 EUR
NAV on 31 December 2019 *
Share Class A (EUR) : 1.195,13
Share Class C (EUR) : 1.169.93
Share Class E (EUR) : 1.181,60
Net Asset Value of the Fund (EUR): 8.642.891,51
*to be confirmed in annual report
Current Construction Status: 85%
Financing for construction has been obtained in Mai 2018 without difficulties due to successful pre-letting of the office spaces. The construction of Southlane Tower II has officially been launched in April 2018.
Initially handover of the construction has been planned for November 2020. Due to the lockdown of construction sites by the Luxembourg Government and the scarcity of certain building materials due to global factory lockdown this date had to be postponed.
Thanks to the Luxembourg Capital Development team and TRALUX Construction (www.tralux.lu) we have been able to implement safety and health measures in record time in order guarantee a fast pick-up on construction. The completion and hand-over of Southlane Tower II is finally set to take place in March 2021.
This information is being issued by the Luxembourg Capital and is for private circulation only. The information contained in this document is strictly confidential. This Factsheet is only produced for shareholders of Luxembourg Capital S.A. SICAV SIF and may not be reproduced, distributed or published by any recipient for any purpose whatsoever without the prior written consent of the Luxembourg Capital. This document does not constitute or form part of any offer or solicitation of an offer of any funds, asset management products or services in any jurisdiction. This document is only an information about the new characteristics of the fund.